Offshore Corporate Bond Deal of the Year
Sydney Airport Finance
US$600 million 3.9% March 2023
Joint lead managers: Bank of America Merrill Lynch, BNP Paribas, J.P.Morgan, RBS Australia
BNP Paribas Australia recently acted as a joint bookrunner on the Sydney Airport senior secured bond issuance. The US$600-million 10-year notes closed five-times oversubscribed with orders from 171 accounts.
Final pricing of T+220 basis points represents a negative new issue premium of 15 basis points inside of the airport’s February 2021 outstanding bonds.
“The pricing and reception to the credit clearly demonstrate the renewal for the company’s repeat issuer status,” said Kate Stewart, Head of Debt Capital Markets for Australia.
Following a successful roadshow in Asia and the United States, the airport took advantage of a strong market, with better than expected earnings from US banks, and a strong technical bid for corporate paper. Unlike a typical 144A transaction with 95 percent of orders coming from the US, the airport attracted bids of US$1.1 billion, representing 38 percent of the orderbook and 20 percent of the final allocations from investors outside the US.
Chris Ruffa, Head of Natural Resources and Energy for Australia, said the “statistics clearly demonstrate the benefit that BNP Paribas as a true global bank bring to a USD 144A transaction”.
The airport is Australia’s biggest and an integral component of the nation’s transport infrastructure that also generates significant revenue from its property, retail and car-park businesses.
This deal was recognised in the market as an outstanding result and was recently voted by debt market users in Australia and New Zealand as KangaNews‘Offshore Corporate Bond Deal of the Year’.
Learn more about KangaNews Awards 2012